Widower - Getting Their Affairs In Order - Property Gifting/Will

[fayf]

A friend (widower)wants to get his affairs in order, has asked for advice, and I have already strongly recommended, professional estate planning advice to him. But he says, is not ready for that yet, he works slowly. Needs to think about things for a good while first. A repeated nudge, will eventually work !

So, while ultimately, seeing a professional is where I am strongly nudging them, I'd appreciate any suggestions on his scenario. He wants to equally divide his properties between his children. He also has several grandchildren, and will likely split his cash assets between them - which would be under the 32.5k exemption for them.

He has 4 children, and he has 3 houses. One is main home, one is a holiday home, and one is rented out.
He is fully aware of the 335k exemption limit for each of his 4 children, but is wondering if the best option is, to will the 3 houses equally, between his 4 children. This is the obvious and logical choice - all 4 children get the 3 houses equally between them, so an equal split.

But he is wondering, if there is any benefit/advantage, to transferring some, or all of the houses, to his children - now ?
Two of the properties, would be currently valued at more than 335k, but I don't believe that's an issue, if transferred in all 4 names.

Is there any other relevant items to consider - apart from the obvious - getting professional estate planning advice, which I have already suggested, multiple times, and will continue to push this.
This person is in general good health, (age 76)but they like to be organised and prepared.

 

[jpd]

If he is not ready then leave him be

About the only thing that is predictable about the future is that it is unpredictable.

I would hesitate to distribute a large share of his estate to his children & grand-children before time - who knows what might happen next year or the year after...

But using the annual gift exemption is a good way to pass some assets without CAT issues.

Putting property in 4 names can easily bring up issues and problems with the management of the property and I would advise against this no matter how well all the siblings get along.

 

[Sue Ellen]

But he is wondering, if there is any benefit/advantage, to transferring some, or all of the houses, to his children - now ?
Two of the properties, would be currently valued at more than 335k, but I don't believe that's an issue, if transferred in all 4 names.

Hi,

He needs to be mindful as to what is possibly seen as disposal of assets especially tied into the Fair Deal scheme. None of us know what can happen tomorrow when it comes to health so 5 years can be a long time.

Cash assets include savings, stocks, shares and securities. Non-cash assets include all forms of property other than cash assets, for example a person’s principal residence or land. In both cases, the assessment will also look at assets that you have deprived yourself of since applying for State support or in the 5 years before the application.



Some re this matter.